01-13-03 Utilities - Laserfiche WebLink

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itommittu *oat tti iti Committa The January 13, 2003 Utilities Committee meeting was called to order by its Chairperson, Council Member Al"Buddy"Kirsits at 4:53 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Aranowski, Pfeifer, Kelly, King, Varner, Kuspa, White, Kirsits and Coleman; Mayor Stephen Luecke, Assistant City Attorney Aladean DeRose, John Skump, John Mountsier, Judith Jones, Tim Johnson, Ted Foti, Jim Robinson, Fred Dominik, Mark Eagan, Tom Lord, Matthew Cullinan, Robert L. Miller, Sr., Department of Community and Economic Development Director Jon Hunt, Public Works Director Gary Gilot, Director of the Division of Environmental Services Jack Dillon, Terry Bland of the 01tt4 1114 Irrihtttte, Kathleen Cekanski-Farrand, Council Attorney, and other unidentified individuals who did not speak. Council Member Kirsits noted that the members of the Council Members of the 2003 Utilities Committee included Council Members Coleman, Aranowski, Pfeifer and himself. In light of the number of individuals attempting to attend this meeting, Council Member Kirsits noted that a motion to recess and reconvene in the Council Chambers would be in order. Council Member Coleman then made a motion, seconded by Council Member Aranowski to recess the Committee meeting and reconvene the meeting in the Council Chambers due to the number of people in attendance. The motion passed. Council Member Kirsits then reconvened the Committee meeting in the Council Chambers. He noted that the purpose of the meeting was to continue discussion on Substitute Bill No. 88-02 which addresses proposed sewer rates and which would amend § 17-21 and § 17-25 of the South Bend Municipal Code (copy attached). He requested individuals who desire to address the Committee to sign in on the legal pad which is next to the microphone. Mayor Luecke then began the presentation on Substitute Bill No. 88-02. The Mayor noted that it is backed by the revised cost of service study which has been filed with the City Clerk's Office(copy attached). He noted that discussions on a rate increase began this past Summer. Originally a four- year rate ordinance was proposed, however the substitute Bill addresses a two-year period. He noted that this is the first rate increase proposed in fourteen (14) years. Mayor Luecke then summarized some of the major changes which included: that the Bill would address a two-year period and that the proposal now calls for bonding of much of the capital items. Mayor Luecke stated that he believes the substitute Bill is fair and has been based on fruitful discussions over the past several months. He further noted that he would be appointing an advisory committee to provide input for future rate proposals. John Skump of Crowe Chizek then addressed the Committee. He noted that the majority of the capital projects are now proposed to be funded by an $11 million bond issue, which would also provide some revenue for related project needs. He noted that the 50% surcharge has been dropped. He stated that a 24% increase in revenues is needed. The major shifts include flat rate plus flow rates with flat rates generating 45% of the revenue and flow rates generating 55% of the revenue. The shift would now be to 30% of the revenue from flat rates and 70% of the revenue from flow rates. He then noted that he provided five (5) handouts to the Committee Members and briefly highlighted some of the information. The handouts included a one-page chart addressing "Revenues and Consumption Prior to Cost of Service Study" (copy attached), a one-page chart addressing"Revenues and Consumption Final Rates" (copy attached), a one-page chart addressing "Analysis of Average Annual Billing with Other Second Class Cities Notre Dame"(copy attached),